If it’s on sale, why not buy?
New data highlights the recent accumulation of Bitcoin by smart money, and larger whales during the dip below the 30K mark which we recently saw.
Some smaller players have started to panic sell driving the market down, but those confident in the future of Bitcoin seem to be unshaken as they go on a discount shopping spree.
Many players in the market fear a further drop in Bitcoin’s price action, but those with a longer term view know that this volatility is simply a part of the game.
After all, we have seen similar and worse market drops in the past—only for Bitcoin to come back better and stronger.
Take a look:
Looking back, we can see the largest corrections where caused by Gemini whales.
It’s safe to make the assumption that a positive $BTC netflow on Gemini could indicate a local top.
— Vish – @KryptoniteTrading (@KryptoniteTrade) June 16, 2021
The big Whales wants us to sell in the dip they try to scare you away! I’ll wait and be patient and make money while they will make money!
— RL (@roeilagziel1) June 24, 2021
Crypto Potato gave us their analysis of the market activity:
BTC whales represent large wallets that contain between 100 and 10,000 bitcoins, and their role in the market is crucial. According to a recent report, such addresses had bought more than 90,000 coins in less than a month, and they were holding roughly half of all BTC in circulation.
Keeping in mind the millions of lost coins, whales’ actions generally have an immediate impact on the market. And, this was the case last week when the Whale Capitulation Index turned negative, showing that they have started to dispose of their assets.
At the time, BTC dabbled with the $40,000 price line, but it quickly dipped further south. This correction culminated yesterday as the cryptocurrency fell to its lowest price line in nearly half a year of $28,500.
At this point, though, the whales changed their tune and used the opportunity to buy the dip, reveals CryptoQuant data.
reddit 🤖: One of the largest Bitcoin whales (#4) just bough back 65% of the Bitcoin they sold before the dip https://t.co/R8EjiPejv0
— Cryptowire – BTC Class of 2013 (@cryptow1re) June 23, 2021
Coin Telegraph reported earlier that:
While investor fears are rising and some traders who bought between the March and May highs are selling at a loss, the total supply of Bitcoin held by long-term holders continues to increase after reaching a low in the middle of May.
dAccording to crypto Twitter analyst William Clemente III, recent on-chain data indicates that BTC is oversold and “now sits on historically important inflection points for major on-chain indicators.”
Clemente suggested that long-term holders “continue to scoop up discounted BTC,” which has helped offset selling by short-term holders and he pointed to the fact that “accumulation is growing stronger.”
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